Overnight Headlines 20th August 2026

Morning Markets Pack — Thursday 20 August 2026

Theme: Bonds and equities recover after the US Treasury doubled long-dated debt buybacks. Asia is firmly bid, led by a near-6% KOSPI rebound, while hawkish Fed minutes and US–Iran tensions keep oil elevated.

Asia-Pacific

Index	Level	Net	%
Nikkei	66,176.65	+850.23	+1.30%
Shanghai	3,900.259	+5.836	+0.15%
Shenzhen	13,951.491	+61.339	+0.44%
Hang Seng	25,816.72	+321.65	+1.26%
ASX 200	9,073.40	+19.60	+0.22%
KOSPI	6,854.41	+383.24	+5.92%
STI	5,673.51	-20.73	-0.36%

US Close

Index	Close	Net	%
Dow	53,463.05	+119.65	+0.22%
S&P 500	7,707.98	+16.22	+0.21%
Nasdaq	26,331.09	+41.379	+0.16%
Russell 2K	3,032.942	+15.055	+0.50%
VIX	14.89	-0.95	-6.00%

US Futures

Future	Last	Net	%	Implied
Dow	53,539.0	+9.00	+0.02%	+0.01%
S&P	7,736.0	+7.00	+0.09%	+0.08%
Nasdaq	29,604.25	+91.50	+0.31%	+0.39%
Russell	3,044.6	+4.70	+0.15%	+0.05%

US Treasuries

Tenor	Yield	Change
2Y	4.171%	-0.8 bp
5Y	4.348%	-0.5 bp
10Y	4.649%	-0.4 bp
20Y	5.183%	-0.4 bp
30Y	5.191%	-0.3 bp

FX & Commodities

USD/JPY158.62 +0.46 / +0.29%

EUR/USD1.1675 -0.0002 / -0.02%

GBP/USD1.3603 unch.

AUD/USD0.7115 -0.0008 / -0.11%

WTI$86.00 +$0.17 / +0.20%

Brent$91.91 +$0.29 / +0.32%

Nat Gas$2.801 -$0.013 / -0.46%

Gold$4,480.95 -$40.96 / -0.91%

Headlines

• Fed minutes show many officials said rate hikes may be needed if inflation fails to decline
• US government debt hits $40tn as borrowing rises at historic rate
• Asian shares rally; KOSPI surges as Treasury expands debt buybacks
• US Treasury doubles long-dated debt buybacks to steady bond market
• US stocks climb as Treasury yields dive
• Asian equities rally as Treasury support counters Fed/Iran risks
• Oil stays elevated as Middle East tensions persist
• Dollar near three-month lows after Treasury action

Today's Calendar — GMT

GMT	Event	Forecast	Previous
06:00	German PPI MoM	+0.5%	-0.3%
11:30	ECB meeting account	—	—
12:30	US Continuing Claims	1,790K	1,777K
12:30	US Initial Claims	210K	209K
12:30	Philadelphia Fed	24.1	41.2
12:30	Philly Fed Employment	—	10.0
14:00	US Leading Index MoM	+0.1%	-0.2%
17:00	US 30Y TIPS Auction	—	2.473%
20:30	Fed Balance Sheet	—	$6.760tn

Commentary

The dominant overnight move is the reversal in global duration. Treasury's decision to double long-dated buybacks has pulled the 30-year yield back to 5.191%, while the 10-year is at 4.649%. The relief has spread through Asian bonds and equities, with Korea the standout.

The caveat is a hawkish set of Fed minutes: several officials favoured a July hike and many indicated further tightening could be necessary if inflation fails to cool. Markets are therefore caught between Treasury support for the long end and a Fed still worried about inflation.

Oil remains the other major macro risk, with Brent near $92 and WTI $86 amid the US–Iran impasse. Today's main data test is US jobless claims and the Philadelphia Fed survey at 12:30 GMT, followed by the 30-year TIPS auction.